I’m at the point where I hold a significant number of stocks in my portfolio. A few months ago we discussed the number needed in a well-diversified portfolio. Hence, I’m still shooting for around 30 stocks across multiple industries. In my IRA portfolio I plan on holding another 10 or so international securities. I’m quickly approaching that 30-stock threshold for my main brokerage account. This has me adding on to existing positions.
I bought another 32 shares of Hormel and 6 shares of Apple. I’ve addressed my thoughts on both these companies in previous posts. Hormel is a great company in a hated sector. Consumer goods and packaged foods, in particular, have been depressed as of late. Hormel is down 16% from its 52-week high. On the other hand, the tech sector has been HOT. Intel, Apple, Amazon, Microsoft, and Alphabet recently reported earnings and blew the market away. Apple, for one, could be a trillion dollar company by February 2021!
In Q4 Apple reported an increase of 12% on revenue and a 24% increase in earnings. The company beat on both revenue and earnings. Their core product, the iPhone, maintained its strength with unit sales of 46.67 million. But what finally got me to pull the lever was the company’s success in diversification! Apple’s Services unit which houses iTunes, Apple Music, Apple Care, and Apple Play saw 34.4% growth. Another venture that got my attention was Apple’s new premium iPhone model, the iPhone X.
The iPhone X is priced at $999 and yet it is selling out all over the country! This absolutely insane price point demonstrates the power of the Apple brand. Consumers will pay anything for their products. This gives the company boundless opportunities for creating new products and/or launching brand extensions. Coupled with the surge in its services unit, I may end up buying more in the near future. For now, I’m happy diversifying between HRL and AAPL.
DISCLAIMER: I am not a licensed investment advisor or tax professional. I am not liable for any losses incurred by any parties. This blog should be viewed for entertainment and/or educational purposes only. Any transactions published are not recommendations to buy or sell any securities. Please consult with an investment professional before making investment decisions.